Thursday, 22 September 2022

5 Barriers to Small Business Growth in 2022

It is obvious that most small business that fail did not observe the harmful effects that some business strategies and practices may have on their business, as such they ignore the signs and allow such avoidable factors to continue. To some success seems so far away; they assume it is only meant for rich people or those who are perfect.

It may be possible that you have not noticed the signs of failure even though there is an obvious pattern that is being repeated. Many life instances have been used to diagnose failure. People who keep moving from one type of business to another without recording success in any, may not have discovered the problems that hamper their efforts. They note that focusing on one aspect of the business in order to minimize cost and increase profit margin while neglecting other modest but important areas can jeopardise such investment.

Similarly, in goal setting, a successful business manager should be able to achieve 80 per cent of the business goals, when lack of dedication and distractions stand in their way, the goals and visions may be abandoned. Failure is not so bad but the inability to learn from the mistake that led to the failure and that of others is what contributes to repeated failure.

Excessive discount

Giving discount on purchases is of the incentives given to customers by businesses to retain their patronage. Customers discount have proven to help customers to save more and drive increases sales for businesses and the reputation built through this unique sales strategy can bring about business success.

However, when this strategy is used for too long, it may eat into the business profit margin and raise questions of products quality. The inquenuity of the reduced prices is also put to question when it drags on for too long because retailers sometimes forget that price cut are meant to be seasonal. When using discounts, the promotion cost must be factored in and should be introduced occasionally in order to provide a real deal and build brand reputation.

Incompetent staff

The challenge of recruiting the right staff to handle important departments of a business is not limited to large organizations because small business also experience difficulty in this area. On a daily basis, companies struggle with attracting motivating and retaining a workforce that will help the business to grow and increase its market share. The practice in which employers lay emphasis on certificate while neglecting skills and the right attitude which are indispensable for good performance, is condemnable.

‘’The best way is to source for the best person who will fit into the job. The employer has to be patient until the right person is discovered.’’ When recruiting every job interview panel to focus on skill set and attitude, nothing that attention of the interviewers is usually on the institution the candidate graduated from, either from a federal university, state university, polytechnic or private university.

Having diverse areas of focus

At the early stage of their business, most entrepreneurs are often trapped with offering numerous products or services without executing any successfully due to lack of expertise, for client who knows better, products that are meant to meet every customers needs or services that proffer solution to every business challenges will look like a farce. Small business should focus on specific areas in order to achieve more.

Seeking instant gratification

Delayed gratification, according to experts is an intentional act of postponing immediate rewards in order to attain all-round success in future. ‘’People who are in the habit of spending as they earn may not be satisfied with their earnings after sometimes. Such people, because they want to be like a king and eventually encounter financial problems and may get into debt.’’

Focusing your energy and mind on immediate returns, places you in a comfort zone and as such you will not want to forge ahead, become significant or stand out of the crowd. Instant gratification has no benefit except for the immediate satisfaction. It does not allow you to save for rainy days. Even if such a person had vision he or she wants to pursue, it will be abandoned.

Giving up easily

Perseverance simply is a conscious persistent determination and it involves regularly evaluating each business goal actions to decide whether to be persistent or not. Many people who give up in business will always have one or two things to put the blame on. ‘’Although, everyone is aware of the economy which does not make doing business an easy feat.

There are issue with multiple tax, that many people try to evade at every opportunity, electricity and finding the right personnel to work with.’’ To overcome this, there is a need to view the world as one full of endless possibilities. Entrepreneurs should pursue their desire with perseverance.

No comments:

Post a Comment